European markets to open lower on US political turmoil

European markets are expected to open lower Thursday as mounting political uncertainty in the U.S. exacerbated concerns among investors as to whether President Donald Trump would be able to deliver on key pro-growth policies.

The FTSE 100 is poised to open 30 points lower at 7,451; the DAX is on track to open down 46 points at 12,581; while the CAC 40 is expected to open 16 points lower at 5,293.

Political turmoil in Washington worsened on Tuesday when reports surfaced that Trump had pressed then-FBI Director James Comey to drop a probe into former National Security Advisor Michael Flynn. The White House has denied the accusation.

The latest development, which sees former FBI Director Robert Mueller recruited as a special counsel to oversee a federal investigation into alleged Russian interference during the presidential election, appeared to accentuate jitters in the market.

On the earnings front, Merck, Prudential and Thomas Cook were among the major companies scheduled to report on Thursday.

France is due to hold a cabinet meeting of its newly appointed government at around 10 a.m. London time.

Support for President Emmanuel Macron’s centrist party is seen growing ahead of legislative elections in June, according to a Harris Interactive poll published Thursday, increasing the likelihood the former economy minister could secure parliamentary support for his reform plans.

Elsewhere, EU Foreign secretaries will gather in Brussels on Thursday to discuss NATO co-operation as well as security and defense.

Source: CNBC